Gavin Howe
The use of Fitbits and other wearable fitness trackers in the workplace is becoming increasingly common, with some employers encouraging their use as part of employee wellness plans. While these programs can help improve employee health and productivity, they have also raised concerns about data privacy and employer overreach. In some cases, employers have tied the use of fitness trackers to lower insurance rates or other financial incentives, leading to questions about whether employees can be forced to disclose personal health information. While companies claim to protect user privacy and comply with relevant laws, the proliferation of wearables in the workplace has sparked debates about the appropriate boundaries between employers and employees.
| Characteristics | Values |
|---|---|
| Percentage of employee wellness plans offering wearable fitness trackers | 8% |
| Companies that offered wearable activity trackers to workers in 2016 | 31% of 540 companies in the US with 1,000 or more employees |
| Companies considering offering wearable activity trackers in 2016 | 23% |
| Companies that incentivize the use of wearables without linking them to lower insurance rates | Houston Methodist, Time Warner, Autodesk, Scotty's Brewhouse |
| Companies that link employee behavior to financial incentives and penalties | Cleveland Clinic |
| Companies that have bought Fitbits for their employees | BP, TransUnion, Apple, Scotty's Brewhouse, Houston Methodist, Time Warner, Autodesk, BP America |
| Companies that subsidize the purchase of fitness trackers | Undisclosed government agency |
| Companies that encourage the use of wearables | Undisclosed aviation company, Undisclosed hospital/research facility, Bates College, Undisclosed large research university |
| Proposed change to West Virginia's public worker health plan | Asking teachers to download a mobile fitness app called Go365 and earn points by using a Fitbit |
| Fitbit's sales force dedicated to pitching employers and insurance companies | Yes |
| Fitbit's software to log the activity of workers | Yes |
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What You'll Learn
- Wearable fitness trackers are offered by some employee wellness plans
- Employers can access health data with employee consent
- Wearables can be used to track employee health and productivity
- Some companies incentivize the use of wearables with rewards and competitions
- Critics argue that wearables can be an invasion of privacy
Wearable fitness trackers are offered by some employee wellness plans
Some employers are encouraging the use of wearables without the gadgets being tied to lower insurance rates. For example, Houston Methodist, which owns a chain of hospitals in the Houston area, offered employees the chance to win $10,000 if they walked more steps than the company's top executives. At Scotty's Brewhouse in Indianapolis, owner Scott Wise offers an extra day of vacation for managers who use a Jawbone UP device to log an average of 10,000 steps a day for three months.
Some companies tie the use of wearables to insurance rates. Under the Affordable Care Act, companies can spend as much as 30% of annual insurance premiums on rewards for healthy behavior. Oil company BP offered an employee the option to wear a fitness-tracking bracelet from FitBit to earn points toward cheaper health insurance. The employee walked more than 1 million steps over several months, wirelessly logging the activity on the device.
The use of wearables in the workplace raises privacy concerns. While companies and insurers say they protect the privacy of people using wearable gadgets and comply with federal laws, employer access to employee biometric data is a gray area of legality. Improper access to employees’ health data violates the Health Insurance Portability and Accountability Act (HIPAA) and the Genetic Information Nondiscrimination Act. However, a typical wearable fitness tracker will not interfere with HIPAA; manufacturers like Fitbit and Apple have devoted significant efforts to ensure their devices comply with HIPAA.
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Employers can access health data with employee consent
In the United States, the Affordable Care Act allows companies to spend up to 30% of annual insurance premiums on rewards for healthy behaviour. As a result, some employers have implemented employee wellness plans that offer wearable fitness trackers like Fitbits to workers. While these programs are often voluntary, some employees may feel pressured to participate to avoid penalties or to earn rewards. For example, a proposed change to West Virginia's public worker health plan would have required teachers to use a fitness app and earn points by using a Fitbit, with non-compliance resulting in a $500 penalty.
While companies and insurers claim to protect the privacy of individuals using wearable gadgets, concerns have been raised about the potential for employers to access sensitive health data without employee consent. Under the Health Insurance Portability and Accountability Act (HIPAA), employers must ensure legal compliance regarding the protection of health information. The HIPAA Privacy Rule protects an individual's medical or health plan records and requires authorization for a healthcare provider to share information with an employer. However, other medical records obtained directly by employers, such as sick leave notes or workers' compensation records, are not covered under HIPAA but may be protected under the Americans with Disabilities Act (ADA) and the Equal Employment Opportunity Commission (EEOC) guidelines.
The ADA requires employers to maintain the confidentiality of employee medical information obtained from medical inquiries, examinations, or voluntary health and wellness programs. This information can be shared with supervisors and managers to provide reasonable accommodations or meet work restrictions. It can also be disclosed to first aid and safety personnel in case of emergency treatment or assistance due to an employee's medical condition. Additionally, it can be shared with individuals investigating compliance with the ADA and similar state and local laws, as well as with state workers' compensation offices for insurance purposes.
While employers can access certain health data with employee consent, there are concerns about the potential for coercion or pressure to participate in wellness programs involving wearable fitness trackers. Some individuals argue that health information should not be the employer's business, but it becomes their concern when they are responsible for footing the bill for health insurance. Decoupling health insurance from employment could be a step towards curbing employers' invasiveness and reducing their interest in their employees' personal health metrics.
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Wearables can be used to track employee health and productivity
Wearable devices are increasingly being introduced in organizations with the aim of improving performance and productivity. These devices provide performance-related feedback that can help both employees and managers navigate the work environment more effectively.
One example of a wearable device is the Fitbit, a fitness tracker that monitors physical activities such as step count, heart rate, sleep patterns, and quality of sleep. These devices can help employees maintain a healthy lifestyle, reducing the likelihood of fatigue and stress. For instance, oil company BP bought 25,000 FitBit devices for North American employees, and employees who log 1 million steps can earn half of the 1,000 points needed to qualify for lower copays, deductibles, and out-of-pocket health expenses. Additionally, FitBit works with companies like Time Warner and Autodesk, and some companies offer incentives for employees who walk a certain number of steps, such as an extra day of vacation.
Wearables can also provide real-time notifications and access to pertinent information, empowering employees to complete tasks more efficiently. Smart glasses, for instance, can provide hands-free access to digital information, instructions, and navigation, enhancing productivity and reducing errors. Wearables can also support augmented reality (AR) and virtual reality (VR), which can boost worker productivity through asset tracking, social behavior monitoring, and stress management.
However, the use of wearables in the workplace raises ethical concerns, particularly regarding privacy. It is crucial for employers to utilize wearable technology responsibly to avoid infringing on workers' privacy. Additionally, there is a debate about whether employers should be involved in their employees' health data, with some arguing that health insurance should be decoupled from employment to remove the incentive for employers to monitor their employees' health.
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Some companies incentivize the use of wearables with rewards and competitions
While some employers have faced criticism for their invasive approach to employee health monitoring, other companies incentivize the use of wearables with rewards and competitions. This approach is expected to facilitate positive behavior changes and empower individuals to take greater responsibility for their health.
For example, oil company BP offered employees the opportunity to earn points toward cheaper health insurance by wearing a FitBit to log 1 million steps. Similarly, employees at Scotty's Brewhouse can win an extra day of vacation by using a Jawbone UP device to log an average of 10,000 steps a day for three months. At Houston Methodist, employees have the chance to win $10,000 if they walk more steps than the company's top executives.
Some insurance companies also incentivize the use of wearables by offering discounts on premiums or other incentives to customers who use wearable devices to track their fitness or other health-related data. For instance, under the Affordable Care Act, companies can spend up to 30% of annual insurance premiums on rewards for healthy behavior.
In the healthcare industry, wearables are expected to deliver more value by focusing on maintaining and improving health, rather than just treating diseases. For instance, WHOOP is a digital health and fitness coach that consists of a wearable device and a mobile app that work together to track and analyze various health metrics. By offering tailored support and positive reinforcement, wearables may empower individuals to achieve their health and fitness goals.
In the fitness industry, wearables create the personalized experience that active consumers crave. Health clubs using Apple's GymKit have created rewards programs such as Basecamp's 'Burn It to Earn It' and Crunch's CrunchTime Active Rewards. These promotions and competitions encourage and motivate consumers to exercise and achieve their wellness goals.
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Critics argue that wearables can be an invasion of privacy
The use of wearables in the workplace further complicates the issue of privacy. In some cases, employers have implemented wellness plans that offer wearable fitness trackers to workers, raising concerns about the extent to which employers can monitor their employees' personal health information. For instance, a proposal in West Virginia's public worker health plan would have required teachers to download a mobile fitness app and earn points by using a Fitbit to track their steps, heart rate, and other metrics. Those who declined or failed to earn enough points would face a penalty. Such practices have been criticised as an invasion of privacy, with some arguing that health insurance should be decoupled from employment to reduce the incentive for employers to monitor their employees' health.
Additionally, the insurance industry's interest in wearable data has raised concerns. Insurance companies may use this data to create more personalised insurance policies, potentially resulting in unexpected premium increases. While this data can help with risk prevention, there is a risk of it being used against consumers. For example, if an individual's wearable device shows they have not been sleeping well or exercising regularly, their insurance premiums may increase.
Furthermore, the security of wearable devices has been questioned. Paco Hope, a software security consultant, warns that the limitations of a computer in a small device like a watch make it more vulnerable to hacking compared to PCs, smartphones, or tablets. As the popularity of wearables increases, the risk of data breaches becomes more significant.
Overall, critics argue that the benefits of wearables must be weighed against the potential invasion of privacy. While these devices can provide valuable health insights, the collection and use of personal data raise concerns about privacy, security, and the potential for misuse.
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Frequently asked questions
No, it is not mandatory to wear a Fitbit for work. However, some companies encourage the use of wearables by offering incentives such as cheaper health insurance or competition prizes.
Companies have said that they protect the privacy of people using wearables and comply with federal laws that prevent employers from accessing certain health information without consent. However, it is possible for employers to monitor everything from blood pressure and pulse to the number of steps taken.
Some employees like the personalised feedback and bonding with co-workers over fitness goals. Additionally, wearing a Fitbit can help trigger people to get active and improve their health.
